(Bloomberg) -- U.S. stocks advanced as lawmakers negotiated the size of a potential spending bill to bolster the economic recovery. The dollar weakened.The S&P 500 rebounded from Monday’s selloff as House Speaker Nancy Pelosi said Democrats and the White House are closing in on an aid package, though the Republican-controlled Senate remains in favor of a smaller deal. The index got an extra boost after Federal Reserve Bank of Chicago President Charles Evans said he’s “somewhat optimistic” about a 2021 economic recovery. Tech shares mostly shook off the U.S. Justice Department’s decision to sue Google for allegedly abusing its power. Netflix Inc. reports after the market closes.Treasuries slumped, along with government bonds in Europe. Oil climbed toward $41 a barrel.A rally built on stimulus hopes has investors weighing Pelosi’s deadline of striking a deal today against speculation that the looming election will prove too much of a hurdle to overcome. Yet with Federal Reserve policy makers urging for more fiscal support to complement unprecedented monetary aid, many in the market may be willing to let the deadline come and go.“The behavior of markets is reflecting optimism that there’s going to be big stimulus by January,” said John Normand, head of cross-asset fundamental strategy at JPMorgan Chase & Co. “I don’t think it’s necessarily a faith that Pelosi and Mnuchin and McConnell will agree to anything substantive by Pelosi’s deadline of today. It’s more of a look-through dynamic.”In Europe, stocks edged lower. UBS gained after the Swiss firm’s traders performed better than most of their Wall Street rivals in the third quarter.Leaders in Europe intensified efforts to slow coronavirus contagion, reviving lockdowns in some areas after piecemeal curbs made little impact on a disease that has infected 4.9 million people regionally. Meanwhile, global cases exceeded 40 million, with the pandemic showing no signs of slowing. In the U.S., surges in Wisconsin and other battleground states pose a challenge for President Donald Trump two weeks before he stands for re-election.Here are some key events this week:Brexit trade talks are likely to continue at least into next week if the U.K. and EU fail to reach an agreement.The final presidential debate before the U.S. election, between President Donald Trump and former Vice President Joe Biden, will be live from Nashville, Tennessee on Thursday.Here are some of the main market moves:StocksThe S&P 500 Index gained 1.4% as of 1:51 p.m. New York time.The Nasdaq 100 Index gained 1.4%.The Stoxx Europe 600 Index decreased 0.4%.The MSCI Asia Pacific Index was little changed.CurrenciesThe Bloomberg Dollar Spot Index fell 0.4%.The British pound was little changed at $1.2945.The Japanese yen was little changed at 105.48 per dollar.BondsThe yield on 10-year Treasuries increased two basis points to 0.79%.Germany’s 10-year yield increased two basis points to -0.61%.Britain’s 10-year yield increased two basis points to 0.185%.Italy’s 10-year yield rose one basis point to 0.73%.CommoditiesWest Texas Intermediate crude rose 0.9% to $41.19 a barrel.Gold rose 0.5% to $1,913 an ounce.For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.